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Certification• We hereby certify that the views expressed in this research service accurately reflect our views based on primary and secondary research with industry participants, industry experts, end users, regulatory organisations, financial and investment community and other related sources.• In addition to the above, our robust in-house forecast and benchmarking models, along with the Frost & Sullivan decision support databases, have been instrumental in the completion and publishing of this research service.• We also certify that no part of our analyst compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this service. 3

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About this Market InsightThank you once again for participating in our important customer research survey. Your contribution helpedraise €1,500 towards the World Wildlife Fund, so many thanks again.Some particularly interesting generic findings and outputs from the survey include: • Frost & Sullivan placing a much greater focus on researching the markets that you felt were hot and poised for growth • 54% of respondents think that a understanding of future mega trends is an integral part of their long term strategic planning process • New product launch is the way to gain the fastest growth in today’s economy • 47% of the respondents still associate Frost & Sullivan with ‘market reports’ which represents about 5% of our gross sales • 40% of respondents rated Frost & Sullivan as better than its competitionThe following market insight focuses on the hot topics in chemicals, materials and food. It provides theresults from the hot topics analysis, where growth can be found through industry convergence and isdesigned to help you find new opportunities to grow your business.We hope to run these surveys every year and have taken all your feedback into consideration to ensure thatfuture surveys are quicker to fill out, targeted and focused.Many thanks again.Noel AndersonVice President – Growth Partnership ServicesEurope, Israel and Africa 6

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Methodological Note Methodology: Online survey with e-mail invitation from Frost & Sullivan address list Field time: December 2011 No. of Interviews: N=586 in total see details on next two charts Respondent: Clients and prospects of Frost & Sullivan in Europe Reporting notes: Due to rounding errors, percentages in charts, tables, etc. may not sum to 100 Comment by Michael L. Ranke, VP Customer Research Europe: First of all I would like to thank you very much for your time in participating in the survey which was launched at not a particularly good time, December. The number of N=586 interviews achieved is therefore highly successful, allowing for a robust analysis on an over all level. The majority of results on the following slides are based on 1,439 responses, as most of you answered that you were tracking 2.5 industries on average. This caused the actual questionnaire to take longer than we anticipated. As a result, the n=1,439 is an excellent sample size. Thank you so such, I trust you will gain great value in the findings. 7

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Role and Function Frost & Sullivan is well connected to all roles and functions in an organisation Role in Organisation Function in Organisation N=586 Q2 Which of the following best describes your role within your organisation? Q3 Which of the following best describes your function within your organisation? Source: Frost & Sullivan analysis 9

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Key Perspectives on Growth in the Healthcare Industryin 2012 Health economics dictate a shift in spending – 1 away from treating and towards predicting, diagnosing and monitoring. Health care that is customised to monitor, 2 diagnose, educate, and intervene regardless of location or time-will be common. In life testing’ will take over the current clinical trial 3 process. Continuous data monitoring can be done by the regulators during the testing process. Clinical trials will eventually become shorter Just –in time manufacturing, novel delivery methods and direct to consumer 4 distribution will be adapted from other industries like the automotive industry Availability of hybrid and transformative technologies propel growth and drive 5 increased utilization of services in medical imaging markets Source: Frost & Sullivan analysis. 11

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Market Highlights for 2012 Key Market Highlights • The economic downturn, global initiatives like the going green concept, have had an impact on the healthcare system and manufacturers. These reforms have a huge impact on the market participants at various levels. • Home care is the key area of focus for most markets. The transition in the distribution structure, product features are likely to be an area of investment for market participants. • Cardiology is a disease area with huge burden to the healthcare system. The need to reduce the burden on expenditure would increase the need for imaging, diagnostics and treatment therapies. It is a sector that is technologically driven, and there is no dearth of investments in R&D. • Companies in the healthcare sector are moving their focus from a fragmented approach that focuses on multiple diseases towards specialised business models such as the niche therapeutic areas. • Convergence of healthcare is paving the way for new drug delivery mechanisms, personalised and targeted medicines. • A growing middle class in developing nations provides new clinical diagnostics market opportunities. With increasing purchasing power in the developing world, more people will gain access to private healthcare services, due to an increase in disposable income which will enable health insurance coverage. 12

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1. Advanced Medical TechnologiesWhat Participants see as Hot Topics in 2012 (Contd ...) Market Themes for 2012 Advanced Medical Technologies Markets: Top 5 Market Topics (Europe), 2012 • Growing home care market has increased competition. It requires different kinds of servicing capabilities, product features and marketing and sales strategies. • The imaging market with a huge product portfolio is an ever Emerging Trends in Home Monitoring changing and technologically driven market. It is important to understand the current trends in the total market. Medical Imaging Markets Outlook - 2012 • Cardiology has the chances of recurrent problems, when not supported appropriately. Hence understanding the Cardiac Patient developing cardiac monitoring market is a key area of focus. Monitoring • The Telemedicine market is growing with increasing Emerging Applications demand due to a shortage of resources. There has been a in Telemedicine increase in acceptance across new applications sectors. Reforms and Changes in • Increasing healthcare expenditure, changing demographics the Healthcare System and challenges posed to hospitals have had an impact on and Impact on t the entire system, hence there are many regulations, reforms, initiatives to overcome the burden. Tracking these Source: Frost & Sullivan analysis. reforms and their impact to the market participants is a key area of focus this year. 14

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1. Advanced Medical TechnologiesPrimary Focus Regions Geographic Focus for 2012 Advanced Medical Technologies Markets: Primary Regions of Focus for EU Players (World), 2012 • North America is one of the largest market for most of the medical technology products. This region has higher acceptance for innovative products, which cover most of the segments we track. • Latin America is the next key area of focus, over Europe, because of the improving standards of care in these developing economies. • Economic downturn in European Union has affected various markets and healthcare system, thus increasing interests in knowing the latest trends. • Eastern Europe, primarily Poland and Russia have had many reforms to improve healthcare systems. There are many projects developed to invest in healthcare in the next 3-5 years, which is likely to Source: Frost & Sullivan analysis. be interesting to the market participants. 15

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2. Life SciencesPrimary Focus Regions Geographic Focus for 2012 Life Sciences Markets: Primary Regions of Focus for EU Players (World), 2012 • The European and U.S. pharmaceutical and biotechnology industry is in a state of transition. Greater incorporation of biotech assets and technology portfolio diversification is critical for future growth prospects. • The Outsourcing of manufacturing to Eastern- Europe, Asia and Latin America is expected to gain momentum due to increasing pressure on cost savings. • Increasing private healthcare expenditure – co- payments is on the rise in Europe. • China and other emerging countries such as India, Brazil, Turkey would drive pharmaceuticals and biotech market growth. • Cancer remains the leading area of development in Source: Frost & Sullivan analysis. the biotech pipeline for companies based in the U.S and Europe. 18

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3. Connected HealthWhat Participants see as Hot Topics in 2012 (Contd ...) Market Themes for 2012 Connected Health: Top 5 Market Topics (Europe), 2012 • Convergence and integration to areas central to connected health including: Healthcare IT, remote monitoring, video telemedicine, mHealth. • Patient centricity is the key element for Health Information healthcare providers and health information Exchange Systems Market exchange is becoming the centre stage of Hardware in Healthcare IT connected health. Market • Healthcare IT services market is growing with ERP Solutions in Healthcare Market increasing demand due to the need for enhance PHR and Patient Portals healthcare delivery models .This has ensured that Market hospitals invested in services to effectively use the Professional Services in HCIT Market healthcare IT solutions. • Patient portals and PHR are key solutions that are connecting the patient with the care setting and are enabling them to play an active part in ensuring quality healthcare services Source: Frost & Sullivan analysis. 20

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3. Connected HealthPrimary Focus Regions Geographic Focus for 2012 Connected Health Markets: Primary Regions of Focus for EU Players (World), 2012 • Europe is one of the largest markets for connected health products and services. This region has a higher acceptance for innovative IT products. • North America is the next key region, as there is a considerable amount of focus on improving healthcare services through the use of Healthcare IT solutions • Economic downturn in European Union has affected various markets and healthcare system, thus increasing interests in knowing the latest trends in other emerging regions. • Latin America and Eastern Europe, primarily Poland and Russia have had many reforms to improve healthcare systems and these regions are expected to witness increase in investment in healthcare IT Source: Frost & Sullivan analysis. solutions to meet the growing demands from clinicians and patients. 21

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Healthcare MarketsConvergence with other Industries (Contd ...) Key Areas of Technology Convergence • Healthcare players see the greatest convergence today from within their own sector as well as the CMF and ICT teams. This is due to the fact that the dynamic biomaterials market has a huge impact on the success of many medical devices. Information Technology holds an important role in supporting hospitals to tackle resource scarcity and drive efficiency. • Convergence of healthcare is driving the need for newer devices and procedures. Devices need to be futuristic, hence be support and need for information technology. • The pressure on the novel materials and coating has been an never ending research tale. 23

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Global Hot Spots in the Healthcare Industry Canada UK/Scandinavian Countries Relatively high government High government spending on spending on healthcare, small healthcare IT, large market, high number of local market number of healthcare IT players. players, sizeable market Hong Kong Germany/Switzerland High governmentU.S. High spending on spending on healthcare,Huge healthcare healthcare, large market with small domestic market,market and not too many market gateway to Chinagrowing, large players, increasing focus onopportunities, niche eHealth and digitisationplayers will be more Indiasuccessful Large market, low operating costs, excellent local skills, high local competition, Distribution hub to the Middle- and South-East of Asia Venezuela & Colombia Constituting part of the Andean Region are the fastest growing countries in many HC categories due to large public investment Sub-Saharan Africa Limited current government spending on healthcare Australia & New Zealand IT, increases planned in the High government spending on Brazil & Mexico future. Private sector healthcare IT, small number of local Two largest healthcare developing increasing focus market players, increasing focus on markets in Latin America and on eHealth. Moderate number eHealth and digitisation growing at a sustained pace of players mainly operating from South Africa. 24

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Four Big Predictions for 2012 Emerging countries such as China, India, Turkey, Brazil & Mexico would be 1 key growth markets There will be further consolidation in the Life Sciences industry with 2 increasing M&A activity Increasing adoption of automation would drive growth in Clinical 3 diagnostics market Molecular diagnostics and Point of Care Testing would be key growth 4 segments Source: Frost & Sullivan analysis 25

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